NI private schools should not pay VAT- minister
Northern Irelandâs education minister has intervened to try to prevent parents from paying tax on private school fees from January.
Paul Givan said fee-paying schools were different in Northern Ireland from those in England, and should not be subject to value-added tax (VAT).
The standard VAT rate of 20% will be added to private school fees from 1 January 2025, which the government says will help fund more teachersâ salaries in England.
About 2,500 pupils in Northern Ireland attend grammar school preps, Christian and other independent schools.
Their parents face paying more for their childrenâs education as the government plans to remove a long-standing VAT exemption for private schools and independent schools.
While some famous private schools like Eton and Harrow in England charge about ÂŁ50,000 a year, schools in Northern Ireland charge parents a lot less than that.
Mr Givan told BBC News NI that schools in Northern Ireland could not be directly compared with many private schools in England, and the new UK-wise approach did not âreflect how the Northern Ireland education system is fundedâ.
While education is devolved to the Northern Ireland Assembly at Stormont, taxation is decided at Westminster.
âThis is ultimately HMRC, itâs the Treasury and Iâm making the representation on behalf of schools in Northern Ireland and parents as to why they shouldnât be included,â Democratic Unionist Party (DUP) minister Mr Givan said.
âI recognise the real concerns parents have.â
In a statement to BBC News NI a government spokesperson said: âWe want to ensure all children have the best chance in life to succeed.â
âEnding tax breaks on private schools will help to raise the revenue needed to fund our education priorities for next year.â
Independent Christian schools in Northern Ireland are among those affected by the VAT changes.
There are nine independent Christian schools in Northern Ireland, including five run by the Free Presbyterian Church.
âBy no means are many of our parents richâ
The Reverend Brian McClung is the administrator of Newtownabbey Independent Christian School on the outskirts of Glengormley in County Antrim.
He told BBC News NI the VAT changes could lead to parents paying more in fees.
âOur parents pay less than ÂŁ2,000 a year to send a child to our school as they want the education we can provide,â he said.
âWe already fundraise to cover the total cost of running the school so that we can keep fees affordable, but we would have no option but to charge parents more.
âWe have some pupils in our Christian schools who are entitled to free school meals, so by no means are many of our parents rich.â
âFor instance, some families go without holidays to send their children to our schools and I know that some grandparents of children help out to pay the school fees.â
âWe are hoping that the Treasury understands that we just canât be compared with better-resourced private schools in England.â
The Holywood Steiner School, which has more than 170 pupils, also faces charging parents more.
Steiner education focuses on childhood development and imaginative play instead of testing, influenced by the work of philosopher Rudolf Steiner.
âIncrease could be dauntingâ
The principal of the Steiner school, Peter Chambers, said the school was almost completely funded by the fees parents paid.
âThe education children get in our school, we believe, is very holistic and is based around child development, as opposed to excessive amounts of testing,â he said.
âOur top end fee is just over ÂŁ6,000 a year so it could be an additional 20% on top of that.â
âAnd to have all these changes implemented in January becomes very complex for school budgets.â
Mr Chambers said he was also concerned that a rise could make the school unaffordable for some parents.
âTo have a mid-year 20% increase for families could be a bit daunting,â he said.
A number of grammar schools may also face raising fees, including those with prep departments for younger children.
Twelve grammars have prep departments, while three admit boarding students, whose families also pay fees.
About 1,500 pupils in Northern Ireland went to grammar preps in 2023-24.
âJust not the sameâ as England
Stephen Moore, the principal of Friendsâ School in Lisburn, which has a prep department said the schools were not the same as independent schools in England.
âThey are entirely self-financing and have much greater autonomy in how theyâre run than we do,â he told BBC News NI.
âItâs legislation thatâs not really intended to capture schools like prep schools in Northern Ireland which do receive funding from government and which are very much departments of local grammar schools.
âIt also could have an impact on the sustainability of prep schools here and that could also have a knock-on effect on the grammar schools of which theyâre an integral part.â